Regulation Risks We operate in a legal and regulatory environment that
3. Exchange Rate Risk We are exposed to foreign exchange risk on sales,
purchases and borrowings that are denominated in foreign currencies, primarily in U.S. dollar and Japanese yen. Our exposures to other foreign exchange rates are not material. Increasing risks of foreign currency exchange rates on our obligations are expected to be offset by time deposits and receivables in foreign currencies that are equal to at least 25 of the outstanding current liabilities. The information presented in the following table is based on assumptions of selling and buying rates in US Dollar as well as other currencies, which were quoted by Reuters on December 31, 2014 and applied respectively to monetary assets and liabilities. The buying and selling rates as of December 31, 2014 were Rp12,380 and Rp12,390 to US1, respectively. However, we believe these assumptions and the information described in the following table may be influenced by a number of factors, including a fluctuation andor depreciation of the Rupiah in the future. 256 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE S Outstanding Balance as of December 31, 2014 Expected Maturity Date Fair value Foreign Currency million Rp Equiv. Rp million 2015 2016 2017 2018 2019 Thereafter Rp million Other 1 3 42,406 42,406 - - - - - 42,406 Other Payables US Dollar 3 42,548 42,548 - - - - - 42,548 Other 1 1 14,327 14,327 - - - - - 14,327 Accrued Expenses US Dollar 66 819,711 819,711 - - - - - 819,711 Japanese Yen 27 2,839 2,839 - - - - - 2,839 Other 1 1 12,666 12,666 - - - - - 12,666 Advances from Customer and Suppliers US Dollar 2 29,884 29,884 - - - - - 29,884 Other 1 825 825 - - - - - 825 Short term bank loan US Dollar 100 1,244,000 1,244,000 - - - - - 1,244,000 Current Maturities of Long-Term Liabilities US Dollar 35 429,510 429,510 - - - - - 451,194 Japanese Yen 768 79,585 79,585 - - - - - 102,045 Promissory Notes US Dollar 7 88,665 64,008 23,371 1,286 - - - 88,191 Long-term liabilites 2 US Dollar 71 880,772 - 317,305 231,678 131,237 93,559 106,993 868,178 Japanese Yen 6,911 716,264 - 79,585 79,585 79,585 79,585 397,924 727,034 1 Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the Reuters buy and sell rates prevailing at end of the reporting period. 2 Long-term liabilities for the purpose of this table consist of loans denominated in foreign currencies from two-step loans, obligation under finance leases and long-term bank loans.4. Interest Rate Risk Our exposure to interest rate fluctuations results primarily
from changes to the floating rate applied for long-term debt. This risk relates to loans under the Government on-lending program that has been used to finance our capital expenditures. Interest rate fluctuation is monitored to minimize any negative impact to financial position. Borrowings at variable interest rates expose our Company and our subsidiaries to interest rate risk. To measure market risk fluctuations in interest rates, our Company and our subsidiaries primarily use interest margin and maturity profile of the financial assets and liabilities based on changing schedule of the interest rate. The actual cash flows from our debt are denominated in Rupiah, US Dollar, and Japanese Yen, as appropriate and as indicated in the table. The information presented in the table has been determined based on the following assumptions: i fixed interest rates on Rupiah time deposits are based on average interest rates offered for three month placements in effect as of December 31, 2014 by the banks where such deposits were located; ii variable interest rates on Rupiah denominated long- term liabilities are calculated as of December 31, 2014 and are based on contractual terms setting interest rates based on average rates for the preceding six months on three month certificates issued by Bank of Indonesia or 257 2014 Annual Report PT Telkom Indonesia Tbk Persero Outstanding Balance as of December 31, 2014 Expected Maturity Date Fair value Original Currency million Rp Equiv. Rp million Rate 2015 2016 2017 2018 2019 Thereafter Rp million ASSETS Fixed Rate Cash and Cash Equivalents Time deposit Rupiah 11,531,450 11,531,450 4 - 11.5 11,531,450 - - - - - 11,531,450 U.S Dollar 279 3,460,434 0.03 - 3 3,460,434 - - - - - 3,460,434 Other Current Financial Assets Time deposit U.S Dollar 9 110,472 0.85 - 1.00 110,472 - - - - - 110,472 Available-for-sale-securities Rupiah 120,360 120,360 6.88 - 7.25 120,360 - - - - - 120,360 U.S Dollar 7 82,135 10.40 - 11.8 82,135 - - - - - 82,135 LIABILITIES Short-term Bank Loans Variable Rate Rupiah Principal 480,983 480,983 480,983 - - - - - 480,983 Interest U.S. Dollar Principal 100 1,244,000 1,244,000 - - - - - 1,244,000 Interest Fixed Rate Rupiah Principal 85,000 85,000 85,000 - - - - - 85,000 Interest Long Term Liabilities 1 Variable Rate Rupiah Principal 10,921,317 10,921,317 3,751,311 2,281,449 1,962,849 1,759,891 610,134 555,683 10,770,905 Interest 2,316,162 2,316,162 8 - 15 905,120 624,331 413,806 236,611 85,450 50,843 US Dollar Principal 56 692,552 299,676 219,813 127,168 30,407 15,488 - 687,484 Interest 1 13,495 1.14 - 6 6,441 4,382 1,946 604 122 - Fixed Rate based on the average three month deposit rate offered by the lenders; iii fixed interest rates on US Dollar deposits are based on average interest rates offered for three month placements by the various lending institutions where such deposits are located as of December 31, 2014 and iv the value of marketable securities is based on the value of such securities on December 31, 2014. However, these assumptions may change in the future. These assumptions are different from the rates used in our Consolidated Financial Statements; accordingly, amounts shown in the table may differ from the amounts shown in our Consolidated Financial Statements. 258 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE SParts
» Telkomsel Double Digit Revenue Growth Indonesia Digital Network IDN 2015 International Expansion
» Parenting Strategy : Strategic guidance
» Shareholders with Ownership More Than 5 MainControlling Shareholder
» Ownership of Stocks by Directors and Commissioners
» Shareholders with Less than 5 Ownership
» Proportion of Common Stock Held in Indonesia and Abroad List of the 20 Biggest Public Shareholders
» Employee Stock Ownership Program
» Chronology of Bonds Purchases of Equity Securities by The Issuer and Affiliated Purchasers
» Sekretariat of President AR TELKOM 2014 ENG
» Director Human Capital AR TELKOM 2014 ENG
» Director of Consumer Service
» Directorate of Wholesale International Business Service
» Director of Innovations AR TELKOM 2014 ENG
» Direktur Enterprise Business AR TELKOM 2014 ENG
» Director of Finance AR TELKOM 2014 ENG
» Department of Corporate AR TELKOM 2014 ENG
» Internal Auditor AR TELKOM 2014 ENG
» Department of Project AR TELKOM 2014 ENG
» Finance Billing Collection Center FBCC
» Human Capital Center AR TELKOM 2014 ENG
» Telkom Corporate University Center
» Supply Center AR TELKOM 2014 ENG
» Innovation Design Center IDeC
» Community Development Center CDC
» Human Resource Assessment Service Assesment Center
» ITSS Division AR TELKOM 2014 ENG
» Enterprise Service Division AR TELKOM 2014 ENG
» Business Service Division AR TELKOM 2014 ENG
» Wholesale Service Division AR TELKOM 2014 ENG
» Broadband Division AR TELKOM 2014 ENG
» Wireless Broadband Division AR TELKOM 2014 ENG
» Network of Broadband Division
» Witel of Central Java of Eastern North
» Witel of Southern Central Java
» Witel Yogyakarta AR TELKOM 2014 ENG
» Witel of Central Java of Eastern South
» Regional Division V East Java
» Witel of East Java of Central East
» Witel of East Java of Southern East
» Witel of Central East Borneo
» Witel of Northern East Borneo
» Witel of Southern East Borneo
» Regional Division VII Eastern Indonesia Area
» Witel of SouthSulawesi AR TELKOM 2014 ENG
» Witel of Western South Sulawesi
» Witel of North Sulawesi North Maluku
» Witel of Maluku AR TELKOM 2014 ENG
» Witel of Papua AR TELKOM 2014 ENG
» PT Telekomunikasi Selular Telkomsel
» PT Telekomunikasi Indonesia Internasional Telin
» Telin Singapore AR TELKOM 2014 ENG
» Telin Hong Kong AR TELKOM 2014 ENG
» Telin Timor-Leste AR TELKOM 2014 ENG
» Telkom Australia AR TELKOM 2014 ENG
» Telkom Macau AR TELKOM 2014 ENG
» Telkom Taiwan AR TELKOM 2014 ENG
» Telin Malaysia AR TELKOM 2014 ENG
» Telkom USA AR TELKOM 2014 ENG
» Telin Branch Office in Myanmar
» PT Multimedia Nusantara Metra
» PT Infrastruktur Telekomunikasi Indonesia
» PT Dayamitra Telekomunikasi Mitratel
» PT Infomedia Nusantara AR TELKOM 2014 ENG
» PT MD Media AR TELKOM 2014 ENG
» PT Sigma Cipta Caraka Telkom Sigma
» PT Administrasi Medika AdMedika
» PT Finnet Indonesia AR TELKOM 2014 ENG
» PT Melon Indonesia AR TELKOM 2014 ENG
» Telkom Property PT Graha Sarana Duta
» PT Telkom Akses AR TELKOM 2014 ENG
» Fixed Wireline Services AR TELKOM 2014 ENG
» Fixed Broadband AR TELKOM 2014 ENG
» Cellular Services AR TELKOM 2014 ENG
» Fixed Wireless Services AR TELKOM 2014 ENG
» Interconnection Services AR TELKOM 2014 ENG
» Network Services AR TELKOM 2014 ENG
» Satellite AR TELKOM 2014 ENG
» Platform Services, which includes Managed
» Digital Advertising is a commercial service for the
» Contact centers AR TELKOM 2014 ENG
» Partnership Stores AR TELKOM 2014 ENG
» Authorized dealers and retail outlets
» Account Management Teams AR TELKOM 2014 ENG
» Telkom Solution Houses AR TELKOM 2014 ENG
» SME Centers AR TELKOM 2014 ENG
» Social Media AR TELKOM 2014 ENG
» Liabilities dan Equity a. Current Liabilities
» Revenues Total revenues increased by Rp6,729 billion, or 8.1, from
» Expenses Total expenses increased by Rp3,693 billion, or 6.4,
» Net Income per Share Net income per share increased by Rp2,4, or 1.6, from
» Revenues Total revenues increased by Rp5,824 billion, or 7.5,
» Expenses Total expenses increased by Rp3,695 billion, or 6.8,
» Income Tax Expense Income tax expense decreased by Rp993 billion, or
» Profit for the Year Attributable to Owners of the Parent Company
» Cash Flows from Operating Activities Net cash provided by operating activities in 2014 was
» Cash Flows from Investing Activities Net cash flows used in investing activities in 2014 was
» Cash Flows from Financing Activities Net cash flows used in financing activities was Rp10,083
» Cash Flows from Operating Activities Net cash provided by operating activities in 2013 was
» Cash Flows from Investing Activities Net cash flows used in investing activities in 2013 was
» Internal Liquidity Sources To fulfill our obligations, we rely primarily on our internal
» External Liquidity Sources Our primary external sources of liquidity are short and
» Outstanding Liquidity Sources We had undrawn loan facilities which include the following
» Purpose of the Commitment As of December 31, 2014, we had material commitments
» Source of Funds We have historically funded our capital expenditures
» Denomination of Currency As of December 31, 2014, details of material commitment
» Planned Actions to Mitigate Foreign Exchange Risks
» Expansion - On January 16, 2014, we establish 100 ownership
» Acquisition - On September 25, 2014, Telkom Australia Telin through
» Employee benefits Under PSAK, the actuarial gains or losses are recognized
» Land rights Under PSAK, land rights are recorded as part of property
» Related party transactions Under Bapepam - LK OJK Regulation No. VIII.G.7
» Indonesian Taxation DebtCapital Restructure
» Dividends Dividends declared by us out of retained earnings and
» Capital Gains The sale or transfer of common stock through the IDX
» Stamp Duty Stock transactions in Indonesia are subject to stamp
» Threshold Passive Foreign Investment Company “PFIC” Classification Matters
» Dividends Any cash distributions paid by us out of earnings and
» PFIC Considerations If we were to be classified as a PFIC in any taxable year,
» Backup Withholding Tax and Information Reporting Requirements
» Telecommunications Law AR TELKOM 2014 ENG
» Telecommunications Regulators AR TELKOM 2014 ENG
» C l a ss i f i c at i o n a n d L i ce n s i n g o f Telecommunications Providers
» Introduction of Competition in the Indonesian Telecommunications Industry
» DLD Services AR TELKOM 2014 ENG
» IDD Services AR TELKOM 2014 ENG
» Limited Mobility Wireless Services
» Interconnection AR TELKOM 2014 ENG
» Consumer Protection AR TELKOM 2014 ENG
» Telecommunication Regulatory Charges AR TELKOM 2014 ENG
» Telecommunications Towers AR TELKOM 2014 ENG
» Telkom’s Shareholders AR TELKOM 2014 ENG
» Realization of General Meeting of Shareholders GMS
» President Director as CEO of Telkom Group
» Director of Network, IT Solution “NITS”
» Director of Human Capital Management “HCM”
» Director of Wholesale International Service “WINS”
» Nomination and Remuneration Committee The composition of the Nomination and Remuneration
» Audit Committee The composition of the Audit Committee as determined
» The Planning and Risk Evaluation and Monitoring Committee “KEMPR”
» Nomination and Remuneration Committee Duties and responsibilities of the Nomination and
» The Audit Committee Based on the Audit Committee Charter, in general, the
» Report of the Nomination and Remuneration Committee in 2014
» Report of the Audit Committee in 2014
» Corporate Strategic Scenario “CSS” KEMPR has monitored the implementation of RJPP CSS
» Annual Business Budget Plan In carrying RKAP 2014, the Board of Commissioners has
» Enterprise Risk Management “Enterprise Risk Management”
» Measures of Directors that require approval from the Board of Commissioners
» Work Meeting KEMPR In 2014 KEMPR held 10 committee meetings.
» Bayu Katon Management Report On Internal Control Over Financial Reporting
» Efforts to provide value added to the management of the company
» Enterprise Risk Management ERM Telkom realizes that risk management is an integral part
» Political and Social Risks Current political and social events in Indonesia may
» Macro Economic Risks AR TELKOM 2014 ENG
» Disaster Risks AR TELKOM 2014 ENG
» Risks Related to Our Business
» Operational Risks A material failure in the continuing operations of our
» Financial Risks We are exposed to interest rate risk
» Legal and Compliance Risks If we are found liable for price fixing by the Indonesian
» Regulation Risks We operate in a legal and regulatory environment that
» Risks Related to Our Fixed Telecommunication Business
» Competition Risks Related to Our Cellular Business Telkomsel
» QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
» Foreign Exchange Controls Indonesia operates a liberal foreign exchange system
» Exchange Rate Risk We are exposed to foreign exchange risk on sales,
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